China Mobile Games and Entertainment Group Ltd. said Monday that its board of directors received a preliminary buyout offer of about $673 million from Chinese investment bank Orient Securities Co.
An Orient Securities subsidiary, called Orient Hongtai Investment Management Co., is offering $21.50 per American depository share for the Chinese developer of mobile games. Orient also said it has secured financing of about 5 billion yuan, or more than $805 million.
Shares of China Mobile Games rose 40 cents to $20.78 in afternoon trading.
China Mobile Games said it retained Kirkland & Ellis to act as its U.S. counsel and expects to hire a financial adviser to help it evaluate the proposal.